Net2Phone Expands Network Reach for Service Providers
Local phone numbers covering more than 80% of US now available worldwide; UK and Canadian phone numbers also available

NEWARK, N.J., Dec 29, 2004 -- Net2Phone (NTOP), a leading Voice over IP (VoIP) enabler for service providers, today announced that it now offers local phone numbers in more than 80% of the United States to service providers and users worldwide, expanding coverage for full-featured digital phone service. Net2Phone now also offers phone numbers in Toronto, Montreal, Calgary, Vancouver, and Hamilton in Canada, and toll free numbers in the United Kingdom for use anywhere in the world.

The expanded service allows Net2Phone to further market its SIP-based VoiceLine(SM) and DOCSIS-compliant CableLine(SM) broadband telephony solutions to cable operators and other service providers looking to offer digital phone service to their customer base. The expanded list of phone numbers drastically enhances service providers' ability to deliver voice service in their regions with local phone numbers, as well as makes more options available to international service providers looking to offer their customers a broader choice of phone numbers.

"With comprehensive coverage across the US and now internationally, we can deliver phone service to providers and individual customers in even more markets worldwide," said David Span, Senior Vice President, Product Management and Marketing at Net2Phone. "Net2Phone is committed to providing our partners with a high quality service with the features and available options that consumers are looking for out of their telephony service."

As the only provider of both SIP-based and DOCSIS-compliant VoIP solutions, Net2Phone is able to meet the varying needs of domestic and international broadband operators worldwide. By supporting multiple platforms and architectures, Net2Phone can conform to any cable operator's particular marketing, technical, financial and operational needs.

Net2Phone empowers high-speed data service providers with residential broadband telephony solutions complete with features and functionality such call waiting, caller ID and voicemail. Net2Phone also seamlessly integrates its front and back office systems, including its billing platform, into the operator's infrastructure, facilitating a unified bill for video, high-speed data, voice and other services. Additional features include web-based tools allowing subscribers to manage their telephony features online as well as check their voicemail.

About Net2Phone
Net2Phone (NTOP), provides VoIP PacketCable, SIP and wireless solutions around the world. As leaders in service providers with turn-key hosted VoIP telephony services, Net2Phone has routed billions of retail VoIP minutes globally, servicing more than 100,000 users in the US as well as hundreds of thousands of more overseas. Net2Phone's hosted SIP platform provides partners with residential broadband telephony, calling cards, prefix dialing and enterprise services in over 100 countries. Net2Phone's PacketCable platform provides cable operators with the ability to deliver a primary line replacement service with guaranteed QoS and features such as E911. For more information about Net2Phone's products and services, please visit www.net2phone.com.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward- looking statements involve risks and uncertainties and actual results could differ materially from those discussed in the forward-looking statements. For this purpose, any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Factors which may affect the Company's results include, but are not limited to, the Company's ability to expand its customer base, the Company's ability to develop additional and leverage its existing distribution channels for its products and solutions, dependence on strategic and channel partners including their ability to distribute the Company's products and meet or renew their financial commitments, the Company's ability to address international markets, the effectiveness of the Company's sales and marketing activities, the acceptance of the Company's products in the marketplace, the timing and scope of deployments of the Company's products by customers, fluctuations in customer sales cycles, customers' ability to obtain additional funding, technical difficulties with respect to the Company's products or products in development, the need for ongoing product development in an environment of rapid technological change, the emergence of new competitors in the marketplace, the Company's ability to compete successfully against established competitors with greater resources, the uncertainty of future governmental regulation, the Company's ability to manage growth, obtain patent protection, and obtain additional funds, general economic conditions and other risks discussed in this press release and in the Company's filings with the Securities and Exchange Commission. All forward-looking statements and risk factors included in this document are made as of the date hereof, based on information available to the Company as of the date thereof, and the Company assumes no obligation to update any forward-looking statement or risk factor.